COMMERCE and Industry Minister Nicos Rolandis yesterday confirmed that a bill imposing penalties for late payment to suppliers would be heard by the Cabinet today.
Rolandis described the measure as an, “EU harmonisation bill,” required for accession to the European Union, but also a necessary step towards better business practice in the country.
The bill stipulates that any goods supplied that remain unpaid for more than 30 days will be subject to an interest payment set at seven per cent above what the Central Bank pays for its own financing. “At current rates, this would amount to over 10 per cent,” the Minister said.
In addition to being a necessary step to come into line with the EU, Rolandis acknowledged that many suppliers had voiced their concerns at late payment and that in some cases delays of up to one year had threatened left some businesses on the verge of bankruptcy. Without naming any companies, the minister admitted he had received complaints from suppliers about supermarket chains, but added, “this will also help to stamp out the practice of late payment by small businesses.”
Rolandis was confident that the Cabinet would approve the bill, given it was necessity for EU harmonisation, and that as yet he had not received any contact from supermarket chains expressing resistance, adding that he expected it to go before the House by October.
Melios Georgiou, General Secretary of the small retailers association (POVEK) expressed his support for the bill, agreeing with the need for, “a specific time frame to be stipulated,” and insisting the imposition of fines was necessary to ensure its enforcement. Georgiou added, “Something like this should have been done a long time ago.”
Paul Pavlos, Public Relations Manager at CTC, the company that owns the Woolworths chain of stores and companies that supply supermarkets said, “I am not in a position to comment on this matter.” Alfamega (formerly Charalambides), Orphanides and Chris Cash and Carry were unavailable for comment on the plan.
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